Inner City Gazette

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HEALTH CLINIC

Dr PS Dingayo Specialist Obstetrician and Gynaecologist MBCHB (UNITRA), FCOG(SA) : WITS/CMSA

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Issue 34 - 2017

31 August - 7 September 2017

Tel : 011 024-8210 / 011 402 - 1977 Inner-City Gazette

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“We are serious about fighting Corruption” – Mashaba “We will continue working together with all institutions within the criminal justice system, such as the Hawks and SAPS, to ensure that CORRUPT INDIVIDUALS AND COMPANIES HAVE NOWHERE TO HIDE IN THE CITY.”

City of Johannesburg Executive Mayor, Cllr Herman Mashaba By Moses Moyo mosesmoyo@icloud.com wo senior staff members of a Johannesburg City Power contractor have been arrested for alleged fraud‚ Executive Mayor of Johannesburg, Herman Mashaba con-

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firmed on Wednesday. Mashaba said, the duo worked for Setheo Engineering‚ which was awarded a contract by City Power in 2015 to build a R126 million substation in Eldorado Park. They will appear in the Johannesburg Commercial Crimes Court on Wednesday next week. Mashaba said the city had a problematic history with Setheo Engineering.

“It (Setheo) was the same company that colluded with the two City Power officials‚ who were in June suspended‚ for a forward payment of almost R66 million‚ without evidence of any physical work done at the substation”, Mashaba said in a statement. “The case was brought to my attention earlier this year‚ when employees of sub-contractors connected to the construction project protested against City Power’s main contractor‚ Setheo‚ and threatened to burn the substation down. “Community leaders of Eldorado Park and surrounding areas prevented the attempted destruction of the substation‚ which is used to supply electricity to Eldorado Park and surrounding areas.” Mashaba said the arrests followed an oversight visit with all stakeholders‚ including representatives from Setheo Engineering‚ to the substation in late June. “During this visit, I instructed City Power Officials to request Absa Bank to verify the authenticity of the bank guarantee Setheo Engineering had submitted to Council, which totaled just over R14 million.” Mashaba Said An investigation by Absa then revealed that the bank guarantee was indeed fraudulent. It further revealed, amongst other things, that Setheo Engineering holds no accounts with Absa; that the account number mentioned in the guarantee does not exist and that the Absa logo was copied and pasted from an unknown source. “Setheo Engineering is yet another example of the previous administration’s failure to observe proper financial management in the City. The African National Congress in Johannesburg welcomed the arrests, “we have learnt with shock the arrest of two City Power contractors on allegations that they have forged the

bank guarantees submitted to City Power. We hope that the law will take its course and all involved brought to book,” Jolidee Matongo, Spokesperson of ANC Greater Joburg Region said. “The DA is happy that the commitment to fight corruption is showing positive results, this will ensure that people get quality services as where corruption happens it denies residents access to basic quality services. Opportunities are channeled to few people. “The DA wants to professionalise the local government to be efficient, clean governance is priority. All those who steal public money belong to prison,” said Khume Ramulifho, Democratic Alliance Joburg Chairperson. These findings have given the City of Johannesburg, through the City’s Anti-Corruption Unit led by General Shadrack Sibiya, fresh zeal to pursue investigations into corrupt companies who collude with selfish and fraudulent City officials to rob residents of the money intended to ensure they have access to quality services. “We will continue working together with all institutions within the criminal justice system, such as the Hawks and SAPS, to ensure that corrupt individuals and companies have nowhere to hide in the City,” added Mashaba. “I remain committed to ensuring that legal action is taken against the contractor for the recovery of monies owed to the residents of this City,” Mashaba Said. I would also like to encourage people to report any fraudulent and corrupt activities through our 24-hour tip-off hotline: 0800 002 587, or visit the City’s Group Forensic and Investigation Services (GFIS) department offices situated at 48 Ameshoff Street in Braamfontein.


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